Compensation Components Offered at a Foreign Work Site
The compensation components offered to an employee of a U.S. company with the opportunity to take a job at a foreign work site availed through some form of an insurance plan. An important set of components is always non-insurance based and provides income to the employees at a foreign work site. These benefits can be classified into three major segments:
Loss of job income continuation
Disability income continuation
Accident and health protection
Liability and property protection
A special set of services and benefits known as prerequisites (Henderson, 2006).
All the categories contain various compensation components with various features given to an employee of a U.S. company with the opportunity of working at a foreign work site.
Disability income continuation
Disability can be categorized as temporary, singular, partial, or total. When the employee is unable to work because of some health related problem or an accident, disability income and continuation payment helps the employee marinating his/her current lifestyle without major changes. A number of income continuation components offer monthly or weekly payments in lieu of normal earned pay check (Goel, 2008). There are eleven components available in disability income continuation plans.
I. Long-term disability
II. Short-term disability
III. Employee's compensation
IV. Social security
V. Non-occupational disability
VI. Retirement plans
VII. Group life insurance
VIII. Dismemberment and accidental death
IX....
Supplemental disability
X. Sick leave
XI. Loss of job income continuation (Henderson, 2006)
These plans help the employee during the shorter periods of unemployment due to contract termination or layoff. This group has eight main compensation components
I. Short-time compensation program
II. Job contract
III. Severance pay
IV. Individual account plan
V. Guaranteed income streams
VI. Guaranteed annual income
Deferred income
An employee of a U.S. business with the opportunity of working at a foreign work site desires to with financial security after completing a successful work life. Over the years, the employee will soon establish several compensation components to help meet future financial goals and accumulate capital.
I. IRA, Keogh and 401 (k) plans
II. Supplemental executive retirement plans
III. Simplified employee pension plans
IV. Social security
V. Qualified retirement plan; stock bonus plan, profit-sharing plan and pension plan
VI. Stock purchase plan
VII. Deferred income plans
VIII. Stock grant
IX. Stock option plan
X. Executive and supplemental group life insurance plans (Goel, 2008).
Accident and health protection
The employee with the benefits will be given various insurance services. This will be helpful to the immediate family members in maintaining normal living standards when unusual health-related adversities occur. These plans relate to medical care covering surgical, medical, and hospital bills accruing from an illness…
